Los Angeles Surpasses San Francisco as the Least Affordable Housing Market
The country’s least affordable housing market is now in Los Angeles-Long Beach-Glendale, according to the National Association of Home Builders and Wells Fargo’s Housing Opportunity Index. With a median home price of $908,750, just 11.3% of L.A. homes sold in 2019 were affordable for median household income earners. The median household income is now $73,100.
San Francisco-Redwood City-South San Francisco was ranked as the second least affordable market. For the past eight quarters, it had been No. 1. Anaheim-Santa Ana-Irvine, San Diego-Carlsbad, and San Jose-Sunnyvale-Santa Clara followed.
In a report released last week, the Los Angeles Economic Development Corp. warned of an economic slowdown driven by L.A.’s astronomical housing and rent.
“The fact that the median Californian household must pay more than seven times its income to afford a home should be grounds for grave concern regarding sustainable economic growth,” the report said.